Stellantis Q3 2024 $STLAM (-0.17%)

Financial performance

• Net revenueStellantis reported net revenue of EUR 33.0 billion for the third quarter of 2024, a decrease of 27% compared to the third quarter of 2023. This decrease was mainly caused by lower shipments, an unfavorable product mix as well as price adjustments and exchange rate changes.
• Consolidated shipmentsThe company recorded consolidated deliveries of 1,148,000 units, a decrease of 20% year-on-year.

Balance sheet overview

• No specific balance sheet details are provided in the report, however a reduction in total inventory to 1,330,000 units as of September 30, 2024 is mentioned, a decrease of 129,000 units year-to-date.

Revenue overview

• Net revenueAs mentioned above, net revenue amounted to EUR 33.0 billion for the third quarter of 2024.

Cash flow overview

• Industrial free cash flows: The forecast for industrial free cash flows for the 2024 financial year is between EUR -5 billion and EUR -10 billion.

Key figures and profitability metrics

• Adjusted operating income margin (AOI): The forecast for the AOI margin for the 2024 financial year is between 5.5% and 7%.

Segment information

• North America: Deliveries decreased by 36%, while net revenue decreased by 42%, due to lower volumes and increased incentive payments.
• Extended Europe: Deliveries decreased by 17% and net sales fell by 12% due to lower shipment volumes and pricing pressure.
• Middle East and AfricaMiddle East and Africa : Shipments decreased by 26 % and net sales fell by 37 %.
• South America: Shipments increased by 14 %, but net sales decreased by 2 % due to negative exchange rate effects.
• China and India & Asia-Pacific: Deliveries decreased by 30% and net sales decreased by 40%.
• Maserati: Deliveries fell by 60% and net sales decreased by 61%.

Competitive position

• Stellantis has a strong position in the EU30 commercial vehicle market, with a market share of over 29% by September. In the battery electric vehicle (BEV) segment, the company leads with a market share of 32.8%.

Forecasts and management commentary

• Stellantis reaffirmed its financial guidance for 2024, which was updated on September 30, 2024. The company plans to launch around 20 new products in 2024, with a focus on multi-energy flexibility.

Risks and opportunities

• RisksThe report highlights challenges such as production bottlenecks, measures to reduce inventory and a difficult market environment in Europe.
• OpportunitiesStellantis is focusing on a product offensive with new launches and the expansion of its BEV offering, which could drive future growth.

Summary of the results

Stellantis is in a period of transition with a significant decline in net sales and deliveries in most regions. Despite these challenges, the company is actively managing inventory levels and focusing on a robust pipeline of new product launches. The strategic focus on multi-energy platforms and expansion in BEV positions Stellantis to capitalize on future market opportunities, although there are headwinds in market conditions and currency impacts to overcome. The company's commitment to its financial guidance reflects confidence in overcoming current operational challenges.

Positive aspects

• Product launches and innovationStellantis is on track to launch around 20 new models in 2024, with a focus on multi-energy flexibility, including hybrid, all-electric and gasoline-powered powertrains. This strategic move is expected to expand market presence and consolidate platforms.
• Strong demand for new productsThe company has received strong orders for new products, including more than 50,000 units for the all-new Citroën C3 and around 75,000 units for the all-new Peugeot 3008.
• Market leadership in the EU30 commercial vehicle marketStellantis holds a leading position in the EU30 commercial vehicle market with over 29% market share by September and a 32.8% market share in the BEV segment.
• Inventory management: The company has successfully reduced inventory at US dealers by over 80,000 units since June 30, 2024 and is targeting a total reduction of 100,000 units by November 30, 2024
• Strategic partnershipsStellantis has partnered with Leapmotor International to distribute advanced BEV technology in Europe, increasing its competitiveness in the electric vehicle market.

Negative aspects

• Decrease in net revenuesStellantis reported a significant year-on-year decrease in net revenue of 27% for the third quarter of 2024, mainly due to lower deliveries and unfavorable product mix, price and foreign exchange impacts.
• Decrease in deliveriesConsolidated deliveries decreased by 20% year-on-year, reflecting production bottlenecks and a challenging market environment in Europe.
• Challenges in regional performanceSeveral regions recorded declines in deliveries and net revenues, including North America (deliveries -36%, revenues -42%) and Extended Europe (deliveries -17%, revenues -12%).
• Maserati performanceMaserati experienced a significant decline, with deliveries down 60% and net revenues down 61% due to lower volumes and weakening demand in key markets.
• Forecast for industrial free cash flowsThe forecast for industrial free cash flows is negative and ranges between EUR -5 billion and EUR -10 billion for the financial year 2024, signaling potential cash flow challenges.